Barclays Increases Tesla Price Target to $325.00

On Wednesday, Barclays revised its price target for Tesla (NASDAQ:TSLA) from $270.00 to $325.00. The financial firm maintains an "equal weight" rating on the stock of the electric vehicle manufacturer. This updated price target suggests that the stock might face a downside of 21.94% based on its previous closing price.

Recent Analyst Activity on Tesla

Tesla has garnered attention from various research analysts recently. For instance, Cantor Fitzgerald raised its price target for Tesla from $255.00 to $365.00, assigning a "neutral" rating as per their research published on December 10th. Additionally, StockNews.com upgraded Tesla's shares from a "sell" rating to a "hold" rating in their notes dated October 24th. Meanwhile, Wells Fargo & Company also made a slight increase in their price target from $120.00 to $125.00 while assigning an "underweight" rating on the same day. In contrast, Stifel Nicolaus set a higher target of $411.00, later increasing it to $492.00 with a "buy" rating on January 6th. Evercore ISI adjusted its price target from $195.00 to $275.00, giving an "in-line" rating in a note published on January 3rd. Overall, the stock has received a mix of ratings: nine analysts suggest selling, fifteen advise holding, sixteen recommend buying, and one analyst has issued a strong buy rating.

Tesla Stock Performance

On the day the news was released, Tesla's shares rose by 5.0%, trading up $19.97 to reach $416.33. A total of 26,654,322 shares changed hands, which is lower than the average trading volume of approximately 75 million shares. The company boasts a market capitalization of $1.34 trillion, with a price-to-earnings ratio of 114.06 and a debt-to-equity ratio of 0.08. Tesla's shares have seen a fluctuation in their annual performance, with a one-year low of $138.80 and a one-year high of $488.54. The 50-day average for the stock is $382.71, while the 200-day average stands at $284.69.

Financial Results Overview

Tesla's recent earnings report, released on October 23rd, showed that the company posted an earnings per share (EPS) of $0.72, surpassing analysts' expectations of $0.58 by a margin of $0.14. The report indicated that Tesla generated revenue of $25.18 billion for the quarter, slightly below analyst projections of $25.47 billion. The return on equity was reported at 10.24%, with a net margin of 13.07%. Year-over-year, Tesla's revenue increased by 7.8%, compared to the same quarter last year, when its EPS was $0.53. Analysts forecast an EPS of 1.99 for the current fiscal year, reflecting ongoing interest in the company’s financial performance.

Insider Trading Activity

In related transactions, Director Kathleen Wilson-Thompson sold 100,000 shares of Tesla stock at an average price of $411.63, totaling approximately $41.16 million. After this sale, she retains 5,400 shares valued at around $2.22 million, representing a significant reduction in her stake. Additionally, CFO Vaibhav Taneja sold 4,000 shares at $250.00 each, amounting to $1 million. Overall, insider trading has shown significant activity, with 621,886 shares sold valued at over $213 million in the previous quarter, and company insiders currently hold approximately 20.70% of the total shares.

Institutional Investor Actions

Several institutional investors have recently adjusted their positions in Tesla. For example, Sax Wealth Advisors LLC increased its stake by 15.6%, now holding 2,969 shares worth about $1.2 million. Wedge Capital Management also raised its stake by 27.1%, acquiring an additional 675 shares to total 3,164 shares valued at approximately $1.28 million. Relyea Zuckerberg Hanson LLC reported an 11.3% increase, gaining 612 shares for a total of 6,027 shares worth about $2.43 million. Institutional ownership is significant, comprising about 66.20% of Tesla's stock, which reflects general confidence in the company's future potential.

Company Overview

Tesla, Inc., based in the United States and with operations in China and across various international markets, is engaged in designing, developing, manufacturing, leasing, and selling electric vehicles, as well as energy generation and storage systems. The company operates primarily in two segments: Automotive and Energy Generation and Storage.

Tesla, Barclays, PriceTarget